A man pays 40 times the annual rent to purchase a building. The rate % per annum he derives from his investment is
A man pays 40 times the annual rent to purchase a building. The rate % per annum he derives from his investment is
Solution
✅ Correct Option: 1
Let the annual rent be
Purchase price =
Rate of return =
Therefore, the rate of return is 2.50% per annum.